There are two U.S. locations where your company is currently the only producer o
ID: 1188107 • Letter: T
Question
There are two U.S. locations where your company is currently the only producer of soda. You currently make 40 in each location, but Pepsi is entering the markets. What decision should you make? (the chart applies to each location) Pepsi Low price High price Your Company Low price (2,2) (10,-5) High price (-20,30) (-10,40) Answer price low price high there will be no difference in pricing low vs. pricing high none of the above Pepsi Low price High price Your Company Low price (2,2) (10,-5) High price (-20,30) (-10,40) price low price high there will be no difference in pricing low vs. pricing high none of the above Pepsi Low price High price Your Company Low price (2,2) (10,-5) High price (-20,30) (-10,40)Explanation / Answer
both will keep price low according to game theory approach. so i ll also keep my price low